In this paper we investigate the welfare impact of lifting geo-blocking restrictions to cross-border e-commerce in the EU using a panel dataset for consumer electronics products in ten European countries for the period 2012-2015. We simulate two counterfactual scenarios where geo-blocking is either fully or only indirectly removed.
This allows consumers to arbitrage price differences and to expand product variety through imports. We compute the welfare effects, as changes in both consumer and producer surpluses. Finally, we extrapolate these partial results to all online sales in the EU-28. The results indicate that both consumers and producers would gain from removing geo-blocking restrictions.
Smaller countries would comparatively more than larger countries.
DUCH BROWN Nestor;
MARTENS Bertin;
2016-05-23
European Commission
JRC101100
https://publications.jrc.ec.europa.eu/repository/handle/JRC101100,
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